Listing ID: 78653
Established insurance brokerages with a large company (Allstate) ready for a new owner or expansion of an existing insurance office. This is a great opportunity to enter a resilient business that is profitable in a challenging business environment. There are several offices available in various cities in the Maryland, Virginia and DC area. The price is dependent on the business location and size of the book.
- Asking Price: $399,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
Training Provided by Allstate
This Business Is An Established Franchise
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell businesses. Nonetheless, the true factor and the one they tell you might be 2 totally different things. As an example, they might claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competition, current reduction in incomes, or an array of various other factors. This is why it is extremely crucial that you not count absolutely on a seller's word, but instead, make use of the seller's response together with your general due diligence. This will paint an extra sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that revenue margins are too small. Lots of organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be met or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract brand-new clients? Many times, companies have repeat clients, which develop the core of their everyday earnings. Certain factors such as brand-new competition sprouting up around the location, road building, as well as staff turn over can affect repeat consumers and negatively impact future profits. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business often, the greater the possibility to develop a returning consumer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the regional median household income impact future income potential?